Award self 6million shares, sack 400 people. Genius.
Thomas Cook 'To Cut Hundreds More Jobs'
Holiday firm Thomas Cook has confirmed it is wielding the axe again as it continues to turn its business around.
The company is planning to cut 430 jobs which it says will "enhance the financial performance of our UK airline, improving profitability and operational efficiency".
The people affected will include pilots and cabin crew whose futures were already threatened by a partnership deal with easyJet.
Thomas Cook started to shed posts and planes from its fleet last year as it battled to recover from a near-financial collapse that saw it eventually take a new £200m loan and extend its financial arrangements amid the slowdown in consumer spending.
Its statement said: "Through our constant review of customer requirements, including the additional flexibility of third party flying arrangements, such as the partnership recently announced with easyJet, we continue to offer our customers greater flexibility and choice, in keeping with the needs of today’s leisure traveller.
"To this end we are proposing to reduce the UK fleet from 35 to 31 aircraft, returning 4 planes to the lessors at the end of their lease term with the resultant cost saving. Our in-house airline will continue to serve all of our key routes and in the last year alone transported over 6.8 million passengers globally to their chosen destination.
"Regrettably these proposals, if implemented, will have an inevitable impact on our people and we have today entered a period of consultation with our employees, with the expectation that approximately 430 roles will be impacted.
Thomas Cook said it would work with the staff affected to support them.
While the workers are being made more efficient.....
Thomas Cook’s new chief executive Harriet Green was reportedly handed 6.2 million shares, which are now worth around more than £1 million.
According to reports, finance director Michael Healy, who was also appointed over the summer after the resignation of Paul Hollingworth, has been given a total of some 2.5 million shares, since joining the group in July. His shares are currently worth £437,500. Thomas Cook is understood to have stresses that the shares would not vest for three years, and would be subject to “stretching” performance targets, the Daily Telegraph said. The operator said it had spoken with major shareholders and governance bodies before announcing the plan, which is designed to act a “golden hello”. Just under half of the shares will be awarded subject to share price targets, while the remainder will depend on financial performance goals being met by the new management team. These targets will be determined by the turnaround plan which Green will be setting out in spring. A Thomas Cook spokesman told the Telegraph: “The board considers is important the new management team is incentivised in the right way and from the start.”
Based on an A320, four aircraft removed for a six month summer season is circa 790,000 seats out of the program. The deal with eJ of 80,000 seats represents about 10% of that capacity. How much is going out to other carriers or are TCX really cutting back capacity/packages by 700,000 seats?
Best of luck to those affected by this. (Been there..)
4 A320 @ 6-7 crews per aircraft say aproxish 160 Pilots and CC. TC must still be sheding back room staff... Guess it was semi expected lets hope in the medium term it comes out stronger and better for it
We now need to figure out if the golden hellos, are bigger than the golden trough, which the piggies will eat at, and then comes the inevitable golden handshake- re bye bye, having of course ruined the company once and for all.
Based on an A320, four aircraft removed for a six month summer season is circa 790,000 seats out of the program.
Sorry to be pedantic,but your sums aren't quite right A4.
Each short haul aircraft will average 2.5 rotations per day, 180 seats per aircraft = 1800 seats per day (packages are sold as round trip so you can't count seats outbound & inbound separately). For a 182 day summer season that's 327,600 fewer round trip seats.
Statistics aside, this is another sad day for people in aviation. The guys and girls in TCX have been through this too many times now. Moral must be at an all time low.
How would meritocracy work, rather than seniority, when (presumably) RT/PCs are being passed to company standard?
A points based system that can include sickness/absence, LIFO, qualifications (and even potential qualifications) and almost anything else the employer sees fit to use.
Unless you have a very strong TU or a very good relationship with the employer you have no say and if your face doesn't fit they can and will find a way to get rid of you. Sorry but that is how it is these day. Seen it happen this year.